EP Minimum Salary

FROM May 1, the monthly minimum salary for the Employment Pass (EP) will rise from S$3,600 to S$3,900 to keep up with the improving pay of fresh graduates from local autonomous universities.To ensure that our local fresh graduates get a head start in their first job, the minimum EP salary should be set at a higher bar. Our local fresh grads, the guys have already lost 2 years in NS, the EP who had been employed 2 years ago already has a 2 years experience in his position. At $3,900 minimum salary for an EP, it could be deemed as very affordable for the FT to be transferred from an overseas European or US organisation to work in SG. S$3,900 is equivalent to US$2,786 or Euro2,516 per month. So, if a foreign US or Europe organisation wants to train its fresh Management trainees, it could post them to SG easily for 1 or 2 years at this very affordable salary of S$3,900 per month. The reason being the standard of living & wages are higher in these countries. For every foreign EP that gains employment here means it’s a loss employment opportunity for our local fresh graduates. After 2 years, the EP gains experience and is now preferred over our local fresh graduates.Therefore, for any fresh EP application, the minimum EP salary should be set at what the Employer needs to pay for the same EP in his or her home country. In this way, it will discourage the Employer from sending their fresh FT trainees to SG for training & obtain experience.The minimum wage of an EP should be taken from the perspective of FT home country, not pegged to our local salary which by default is lower compared to other developed countries.Do comment on this to make a robust discussion, thanks! https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/ep-minimum-salary-goes-up-to-s3900-from-may-1-this-year

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